TORONTO — Loblaw Cos.’ fourth-quarter financial results showed progress in the company’s turnaround program, but officials of the retailer here are bracing for a difficult year ahead.

A worsening economy, along with needed investments in store renovations and technology infrastructure, would “challenge results” in fiscal 2009, which began Jan. 4, Loblaw officials said in a conference call Wednesday.

“People have accused me of being too cautious about this, but I think t